Lesson 5 · 6 min
Order types
How you enter and exit decides the price you get.
Market order
Buy or sell now at the best available price. Fast, but in fast markets the fill can differ from the price you saw (slippage).
Limit and stop entries
A buy limit waits for a lower price; a sell limit for a higher one. A buy stop triggers above the current price; a sell stop below it.
Stop-loss and take-profit
A stop-loss closes a losing trade at a set level. A take-profit closes a winning one. A stop-loss isn't guaranteed: over a weekend gap it can fill worse. Some brokers sell guaranteed stops for a fee.
Trailing stop
A stop that follows the price by a set distance as the trade moves your way, and stays put when it moves against you.